Retirement income in South Carolina
Varies
Does South Carolina Tax Retirement Income?
Short answer: Partly. Taxpayers under 65 may deduct up to $3,000 and those 65+ up to $10,000 per person of retirement income (pensions, 401(k), IRA). Those 65+ also get a $15,000 age deduction against any income, reduced by the retirement deduction claimed. The 2026 tax law (H.4216) changed rates but kept these retirement deductions.
Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Retirement income in South Carolina
Varies
Individuals / Personal Taxes
Partly. Taxpayers under 65 may deduct up to $3,000 and those 65+ up to $10,000 per person of retirement income (pensions, 401(k), IRA). Those 65+ also get a $15,000 age deduction against any income, reduced by the retirement deduction claimed. The 2026 tax law (H.4216) changed rates but kept these retirement deductions.
Business justification
Partly. Taxpayers under 65 may deduct up to $3,000 and those 65+ up to $10,000 per person of retirement income (pensions, 401(k), IRA). Those 65+ also get a $15,000 age deduction against any income, reduced by the retirement deduction claimed. The 2026 tax law (H.4216) changed rates but kept these retirement deductions. Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Category
- Personal Tax Deductions